The major U.S.-based crypto exchange started trading on Nasdaq last week. In a recent development, Brian Armstrong, Coinbase’s CEO, sold approximately $292 million worth of COIN shares on opening day. As per the filing with the U.S.SEC (Securities and Exchange Commission), Coinbase CEO traded a sum of 749,999 COIN shares in three distinct batches at prices varying from $381-$410. The stock of Coinbase was launched on April 14. COIN share got a reference price of $250 from Nasdaq.
Furthermore, the closing price of COIN stock on Friday was $342. The significant U.S. crypto exchange shares hit an ATH (all-time high) of nearly $420 during the launch date. The price witnessed a correction on an opening day but stabilized above $300. As per a recent report issued by Bloomberg, Cathie Wood’s Ark Investment Management acquired approximately $246 million worth of COIN stock on Wednesday. The company increased its COIN stock case by acquiring 341,186 Coinbase shares worth roughly $110 million on Thursday.
The Officials Sold COIN Shares to Enhance Liquidity
Moreover, Brian Armstrong sold 749,999 shares in three sittings when COIN was selling between $381 and $410. That equals approximately 1.5% of his stake in the company. Fred Wilson, the director of Coinbase, sold 4.7 million for a total of $1.8 billion. Additionally, fellow director Marc Andreessen traded 1.18 million shares in association with Andreessen Horowitz and two related entities. While some may view the sale as a negative growth, it might not be as bad as it appears. Trading these shares to the public is a method to improve liquidity. The whole sum traded by all holders comes to just under $5 billion.
However, Coinbase’s direct listing proceeds to be the talk of the town. Analysts have considered it a landmark moment for the market, and the crypto community also seems to be generally satisfied with the mainstream exposure it brings. However, Coinbase had to go through various things before achieving the landmark moment. The exchange fought accusations of racism, the blame for political indifference, and platform problems. But none of this changed the exchange very much in the long run, and significant investors are eagerly following it.
The U.S.-based crypto exchange concentrates on producing revenue through various streams in the medium to long term future. In a CNBC interview, Armstrong chatted about plans to leverage other products to create more expected income. Summing it up, the Coinbase listing and the addition of various institutional products have convinced reluctant investors to fund.